Property Tax in Dubai: Rates, Regulations and Benefits (2026)

Dubai property changed hands 11,600 times in August 2026, for AED 27,888,891,910. At 4 per cent, that single month generated AED 1,115,555,676 in Land Department transfer fees.

That transfer fee is the main tax on a Dubai property transaction. There is no income tax on the rent it earns and no capital gains tax on the profit when you sell. This page lists every tax that actually applies, with the official source for each rate.

Nothing here is tax advice. Rates change and personal circumstances differ. Confirm your own position with a qualified adviser and with the Federal Tax Authority before you act.

Every tax, in one table

What you pay when you buy

The transfer fee is 4 per cent of the registered price. On the median Dubai home of AED 1,108,207 that is AED 44,328. It is collected at registration, not billed later.

The Land Department schedule splits the 4 per cent as 2 per cent from the seller and 2 per cent from the buyer. Dubai practice puts the whole 4 per cent on the buyer. That is convention rather than law, so it is negotiable, and on the median home the split is worth AED 22,164.

Registration trustee fees, the title deed and the small knowledge and innovation fees are charges rather than taxes. We set out the full purchase cost, including the mortgage side, in our article on the money you need to buy.

Two more registration charges catch buyers out. A mortgage is registered at 0.25 per cent of the loan amount, according to the Land Department. An off plan purchase pays the same 4 per cent, split 2 per cent developer and 2 per cent buyer, when it is registered on Oqood, the off plan register. Since 1 February 2025 banks no longer finance the Land Department and broker fees, so they are paid in cash on top of the deposit, as The National reported.

What you pay while you own

There is no annual property tax in Dubai. No land tax and no wealth tax on the asset.

The closest thing to a council tax is the Dubai Municipality housing fee. A tenant pays 5 per cent of the annual rent, added to the monthly DEWA electricity and water bill, according to the UAE Government portal. When the property is let, the tenant pays it, not the landlord. An owner who lives in the property pays the same 5 per cent on an estimated rent for a comparable unit, also through DEWA, as Gulf News has explained.

You do pay service charges, and these are the cost owners most often underestimate. They are not a tax. They are the running cost of the shared parts of the building, set per project and approved by RERA, and they are a legal obligation on the owner of a jointly owned property.

Because they are set project by project, there is no single rate to quote and we will not invent one. The Land Department publishes the approved figure for each project in its Service Charge Index, reachable through Mollak and the Dubai REST app. Look up the actual building before you buy.

What you pay when you rent it out

No income tax. The UAE does not levy income tax on individuals, so rent received by an individual is not taxed in the UAE.

Corporate tax is the thing to understand properly, because the headline makes it sound broader than it is. Under Cabinet Decision No. 49 of 2023, a natural person is only inside the corporate tax net where turnover from business activities exceeds AED 1,000,000 in a calendar year. That decision then explicitly excludes three categories from counting as a business at all: wage, personal investment income and real estate investment income.

The decision defines real estate investment as investment activity by a natural person in the sale, leasing, sub leasing and renting of land or property in the UAE that is not conducted, and does not need to be conducted, through a licence from a licensing authority.

So an individual who owns Dubai property personally and rents it out is outside corporate tax on that income. Hold the same property through a licensed company and you are in the ordinary corporate tax rules, where the first AED 375,000 of taxable income is at 0 per cent and the excess is at 9 per cent.

What you pay when you sell

No capital gains tax for an individual selling property held personally. There is no personal income tax in the UAE for a gain to be charged under.

You do pay the transfer fee again on the next sale, because it attaches to the registration rather than to the profit. Across the whole of August 2026 that came to AED 1,115,555,676 on AED 27,888,891,910 of registered sales.

VAT and property, which is not what most people assume

VAT is 5 per cent, but residential property is carved out. The Federal Tax Authority treats the first supply of a new residential building, within three years of completion, as zero rated. Every supply after that is exempt. The effect is that a residential buyer does not carry VAT on the home itself.

Commercial property is different. Sales and leases of commercial property are taxable at the standard 5 per cent rate.

VAT still applies to services around the transaction. Agency commission carries 5 per cent VAT, and so do the registration trustee fees.

The regulations behind each rate

Every rate above traces back to a law, a decision or an official fee schedule. These are the ones that matter for a property owner.

• Ownership. Dubai Law No. 7 of 2006 lets non UAE nationals own freehold in the areas the Ruler designates, and requires every sale to be registered with the Land Department.
• Transfer and registration fees. The Land Department fee schedule sets the 2 per cent plus 2 per cent transfer fee, the AED 250 title deed and the trustee office fee of AED 4,000 plus VAT on a property of AED 500,000 or more, or AED 2,000 plus VAT below that.
• Off plan money. Dubai Law No. 8 of 2007 requires off plan payments to go into a project escrow account that can only be used to build that project.
• VAT. The Ministry of Finance applies 5 per cent to commercial property. Residential property is generally exempt, and the first supply of a new residential building within three years of completion is zero rated.
• Corporate tax. Under Cabinet Decision No. 49 of 2023, an individual’s rent and sale proceeds from property held without a licence fall outside corporate tax. The Federal Tax Authority guide sets out where that line sits.
• Service charges. These are approved per project by RERA. Since December 2025 the Land Department allows fixed three year service charge budgets, starting with Palm Jumeirah, as Khaleej Times reported.

The benefits for property owners

Low tax is only part of the case. These are the benefits that hold up when you check them against the source.

• No tax on rent. An individual who owns property personally and lets it without a licence pays no UAE income tax and no corporate tax on the rent.
• No capital gains tax. An individual selling a property held personally keeps the gain, because the UAE does not levy income tax on individuals.
• No annual property tax. The large cost is paid once, at registration. After that the running costs are service charges and, if you live in the property, the housing fee.
• A route to residence. A property worth AED 2 million or more can support a 10 year renewable Golden Visa, according to the Land Department. The GDRFA conditions include a lien on the property while the visa runs.
• A stable currency. The dirham trades at 3.6725 to the US dollar in every Central Bank of the UAE daily rate sheet in 2026, so a dollar based investor carries little currency risk.
• Protected off plan payments. Escrow under Law No. 8 of 2007 keeps buyer money tied to the project it was paid for.

The benefit has two limits. First, your home country may still tax the income and the gain. Americans are taxed on worldwide income, and our US team covers that in Dubai real estate tax for Americans. Second, a holiday home permit or another licence can turn letting into a business. Corporate tax then applies once that business turnover passes AED 1 million in a year.

Method and limits

• Transaction figures come from the Dubai Land Department register for August 2026, downloaded on 2 September 2026. It holds 15,955 registrations. We checked on 24 September 2026 and no newer monthly file had been published.
• The AED 1,115,555,676 transfer fee total is 4 per cent of the AED 27,888,891,910 recorded across all 11,600 sales in that month, including land and whole buildings. It is arithmetic on the register, not a figure the Land Department publishes as revenue. Actual receipts will differ where exemptions, waivers or first sale arrangements applied.
• The median home of AED 1,108,207 is the site standard basis. Sales only, Residential usage, Unit property type, at or above AED 500 per square foot, which is 9,956 homes out of 10,123 after removing 167 non market rows.
• Rates are as published by the issuing authority on 24 September 2026. Personal income tax and VAT from the UAE Government portal and the Federal Tax Authority. Corporate tax and the top up tax from the Ministry of Finance. The transfer fee and service charge approval from the Dubai Land Department. The natural person threshold and the real estate investment exclusion from Cabinet Decision No. 49 of 2023.
• We have not quoted a service charge rate. They are approved per project, so any single number would be wrong for most buildings. Use the Land Department Service Charge Index for the building you are actually buying in.
• This covers UAE taxes only. Your home country may tax the same income or gain. Americans in particular are taxed on worldwide income regardless of where the property sits.
• Free zone companies, tax groups, and reliefs such as small business relief are outside the scope of this page.
• This is general information and not tax advice.

Frequently asked questions

Is there property tax in Dubai?

No annual property tax. The main charge is the Land Department transfer fee of 4 per cent of the registered price, paid once at registration. On the median August 2026 home of AED 1,108,207 that is AED 44,328.

Is there capital gains tax on Dubai property?

Not for an individual selling property held personally. The UAE does not levy income tax on individuals, so there is no personal charge for a gain to fall under. A company holding property is inside the corporate tax rules instead.

Do I pay tax on rental income in Dubai?

An individual renting out property they own personally does not. Cabinet Decision No. 49 of 2023 excludes real estate investment income by a natural person from being a business activity, so the AED 1,000,000 turnover threshold for corporate tax does not capture it. Holding through a licensed company changes that.

Is VAT charged on buying a home in Dubai?

Not on the home itself. The first supply of a new residential building within three years of completion is zero rated, and every supply after that is exempt. Commercial property is taxable at 5 per cent. VAT does apply to services around the deal, including agency commission.

What is corporate tax in the UAE?

Zero per cent on taxable income up to AED 375,000 and 9 per cent above it, for financial years starting on or after 1 June 2023. A separate top up tax applies from 1 January 2025 to multinational groups with global revenue of EUR 750 million or more, which does not reach individual property owners.

Are service charges a tax?

No. They are the running cost of the shared parts of a jointly owned building, approved by RERA per project and owed by the owner. There is no single rate, so check the Land Department Service Charge Index for your specific project.

Who pays the 5 per cent housing fee?

The tenant pays it on a let property, through the DEWA bill. An owner who lives in the property pays 5 per cent of an estimated rent for a comparable unit.

Does a holiday home permit change the tax position?

It can. Letting under a licence such as a holiday home permit can make the activity a business. Corporate tax then applies once business turnover passes AED 1 million in a year.

Cresco Real Estate is licensed by RERA under ORN 34288. Umer Shauket holds BRN 59655. Transaction figures are recomputed from the Land Department register. Rates are quoted from the issuing authority.

Buying an office? Commercial property carries 5% VAT on sale and rent. See our commercial office investment guide for the full cost picture and the types of real estate in Dubai.